Activity-Based Costing Is a Method of Cost Allocation That Is

question 65

Multiple Choice

Activity-based costing is a method of cost allocation that is useful for assigning _______ costs to products or services.

• A) direct materials
• B) direct labour
• C) manufacturing overhead
• D) direct materials and direct labour

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Definitions:

Set Prices

The act of determining the selling cost of goods or services, usually by the manufacturer or by agreement among sellers.

Monopoly Power

The ability to control price and drive competitors out of the market.

Economic Power

The capacity of an entity or country to influence or control economic activities through financial means, production capabilities, or market control.

Limit Production

A strategy or policy implemented to restrict the quantity of goods produced, often to maintain prices or conserve resources.